Methods of exchanging an obligation

Abstract

A method of exchanging an obligation between parties where the exchange is administered by a supervisory institution that ensures real-time settling of obligations between parties by updating shadow records in real-time and instructing one or more exchange institutions to effect, from time to time, the exchange of obligations in accounts maintained external to the supervisory institution. Updates to the exchange institution accounts may reflect the net obligations of parties over a nominated period of time. The role of the supervisory institution is to ensure that obligations are only settled where parties have sufficient balance in their shadow records to complete the transaction. Obligations that can be exchanged include, but are not limited to: shares in financial or physical assets, participation rights in wagers, national or synthetic currencies, exchange settlement account deposits, taxation account deposits, and deposits of financial instruments or precious metals.

1. A method of exchanging an obligation between parties, wherein an exchange obligation is administered by a supervisory institution, and wherein at least one credit record and one debit record is maintained with an exchange institution, the method comprising:
 (a) maintaining a shadow credit record and a shadow debit record for a party to be held independently by the supervisory institution from the exchange institution;  
 (b) for every transaction resulting in an exchange obligation, the supervisory institution electronically adjusting said shadow credit record and/or shadow debit record, allowing only those transactions that do not result in a value of said shadow debit record being less than a value of said shadow credit record; and  
 (c) at the end of a period of time, the supervisory institution providing an instruction to the exchange institution to credit and/or debit in accordance with said adjustments of said allowed transactions, wherein said instruction being an irrevocable, time invariant obligation placed on the exchange institution.  
 
   
   
     2. The method of  claim 1 , wherein said exchange obligation arises out of a transaction linked to a share price. 
   
   
     3. The method of  claim 1 , wherein said exchange obligation arises out of a transaction linked to a weather event. 
   
   
     4. The method of  claim 1 , wherein said exchange obligation arises out of a transaction linked to a market event. 
   
   
     5. The method of  claim 1 , wherein said exchange obligation involves the transfer of shares in financial or physical assets. 
   
   
     6. The method of  claim 1 , wherein said exchange obligation involves a wager. 
   
   
     7. The method of  claim 1 , wherein said exchange obligation involves the transfer of a commodity. 
   
   
     8. The method of  claim 1 , wherein said exchange obligation arises out of a transaction involving money for goods, services, promises, credits or warrants. 
   
   
     9. The method of  claim 1 , wherein said period of time is a part of a day. 
   
   
     10. The method of  claim 1 , wherein each said adjustment takes place in chronological order. 
   
   
     11. The method of  claim 1 , wherein said step of providing an instruction represents one or more credits and/or one or more debits netted throughout a period for each party in respect to transactions of that period of time. 
   
   
     12. The method of  claim 1 , wherein the exchange institution is a credit card company. 
   
   
     13. The method of  claim 1 , wherein the exchange institution is a debit card company. 
   
   
     14. The method of  claim 1 , wherein the exchange institution is a bank. 
   
   
     15. The method of  claim 1 , wherein the exchange institution is a central bank. 
   
   
     16. The method of  claim 1 , wherein the exchange institution is a guarantor offering credit to one or more parties involved in said exchange obligation. 
   
   
     17. The method of  claim 1 , wherein the exchange institution is a party offering credit to one or more other parties involved in said exchange obligation. 
   
   
     18. The method of  claim 1 , wherein said exchange obligation arises out of a currency exchange transaction. 
   
   
     19. The method of  claim 1 , wherein two or more exchange institutions operate in different time zones. 
   
   
     20. The method of  claim 1 , wherein two or more exchange institutions have different account processing cycles. 
   
   
     21. The method of  claim 1 , wherein the transaction arises out of a collateralization payment obligation. 
   
   
     22. The method of  claim 1 , further comprising the step of obtaining from the exchange institution a balance for said shadow credit record and/or said shadow debit record. 
   
   
     23. The method of  claim 1 , wherein the exchange institution is a non-bank clearing house or depository. 
   
   
     24. The method of  claim 1 , wherein at least one credit record and one debit record is maintained with another exchange institution, the method further comprising administering an exchange obligation involving said another exchange institution in accordance with steps (a)-(c). 
   
   
     25. The method of  claim 24 , wherein said another exchange institution operates in a different time zone than the exchange institution. 
   
   
     26. The method of  claim 24 , wherein said another exchange institution has a different account processing cycle than the exchange institution. 
   
   
     27. A method of exchanging an obligation between parties, wherein an exchange obligation is administered by a supervisory institution, and wherein an account is maintained with an exchange institution, the method comprising:
 (a) maintaining a shadow record for a first party to be held independently by the supervisory institution from the exchange institution;  
 (b) for every transaction resulting in an exchange obligation, the supervisory institution electronically adjusting said shadow record, allowing only those transactions that do not result in a value of said shadow record being less than zero; and  
 (c) exchanging at least one transaction between the supervisory institution and the exchange institution at the end of a period of time in accordance with said adjustments made in step (b), wherein said transaction being an irrevocable, time invariant obligation placed on the exchange institution.  
 
   
   
     28. The method of  claim 27 , wherein the account pertains to shares in financial or physical assets. 
   
   
     29. The method of  claim 27 , wherein the account pertains to participation rights in wagers. 
   
   
     30. The method of  claim 27 , wherein the account pertains to goods. 
   
   
     31. The method of  claim 27 , wherein the account pertains to services. 
   
   
     32. The method of  claim 27 , wherein the account pertains to central bank exchange settlement account deposits. 
   
   
     33. The method of  claim 27 , wherein the account pertains to financial instrument deposits. 
   
   
     34. The method of  claim 27 , wherein the account pertains to credit extended to/from a party or to/from a guarantor of a party. 
   
   
     35. The method of  claim 27 , wherein the account includes an overdraft or line-of-credit with an exchange institution. 
   
   
     36. The method of  claim 27 , wherein said first party holds one or more accounts with more than one exchange institution. 
   
   
     37. The method of  claim 27 , wherein the supervisory institution and exchange institution are legally and/or geographically domiciled in different countries. 
   
   
     38. The method of  claim 27 , wherein one party is a buyer and the other party is a seller. 
   
   
     39. The method of  claim 27 , further comprising debiting and/or crediting said shadow record based on said transaction. 
   
   
     40. The method of  claim 27 , wherein said exchange obligation arises out of a collateralization payment obligation. 
   
   
     41. The method of  claim 27 , wherein said transaction involves a weather event. 
   
   
     42. The method of  claim 27 , wherein said transaction involves a market event. 
   
   
     43. The method of  claim 27 , wherein said transaction involves a wager. 
   
   
     44. The method of  claim 27 , wherein said transaction involves an exchange of money for goods, services, promises, credits or warrants. 
   
   
     45. The method of  claim 27 , wherein the exchange institution is a credit card company. 
   
   
     46. The method of  claim 27 , wherein the exchange institution is a debit card company. 
   
   
     47. The method of  claim 27 , wherein the exchange institution is a party offering credit to one or more other parties involved in said exchange obligation. 
   
   
     48. The method of  claim 27 , further comprising the step of obtaining from the exchange institution a balance for said shadow record. 
   
   
     49. The method of  claim 27 , wherein a second party maintains an account with an exchange institution that is different from the exchange institution that maintains the account for said first party. 
   
   
     50. The method of  claim 49 , wherein two or more exchange institutions operate in different time zones. 
   
   
     51. The method of  claim 49 , wherein two or more exchange institutions have different account processing cycles. 
   
   
     52. The method of  claim 27 , wherein exchanging said at least one transaction between the supervisory and the exchange institution at the end of a period of time represents netted adjustments made in step (b). 
   
   
     53. The method of  claim 27 , wherein said period of time is a part of a day. 
   
   
     54. The method of  claim 27 , wherein said exchange obligation arises out of a currency exchange transaction. 
   
   
     55. The method of  claim 27 , wherein the exchange institution is a bank. 
   
   
     56. The method of  claim 27 , wherein the exchange institution is a central bank. 
   
   
     57. The method of  claim 27 , wherein two or more exchange institutions have different account processing cycles. 
   
   
     58. The method of  claim 27 , wherein an account is maintained with another exchange institution, the method further comprising administering an exchange obligation involving said another exchange institution in accordance with steps (a)-(c). 
   
   
     59. The method of  claim 58 , wherein said another exchange institution operates in a different time zone than the exchange institution. 
   
   
     60. The method of  claim 58 , wherein said another exchange institution has a different account processing cycle than the exchange institution. 
   
   
     61. A method of exchanging a payment obligation of a currency exchange transaction between banks, wherein an exchange obligation is administered by a supervisory institution, and wherein at least one bank maintains a credit record and a debit record with a central bank, the method comprising:
 (a) maintaining a shadow credit record and a shadow debit record for a bank to be held independently by the supervisory institution from the central bank;  
 (b) for every currency exchange transaction resulting in a payment obligation, the supervisory institution electronically adjusting said shadow credit record and/or shadow debit record, allowing only those currency exchange transactions that result in a net positive shadow record balance; and  
 (c) periodically providing an instruction to the central bank to credit and/or debit in accordance with said adjustment of said allowed currency exchange transaction, wherein said instruction being an irrevocable, time invariant obligation placed on the central bank.  
 
   
   
     62. The method of  claim 61 , wherein each said adjustment takes place in chronological order. 
   
   
     63. The method of  claim 61 , further comprising the step of obtaining from the central bank a balance for said shadow credit record and/or said shadow debit record. 
   
   
     64. The method of  claim 61 , wherein the step of periodically providing said instruction occurs at an end of a processing cycle. 
   
   
     65. A method of exchanging a payment obligation between a buyer and a seller, wherein the exchange of the payment obligation is administered by a supervisory institution, and wherein the buyer and seller maintain an account with a bank, the method comprising:
 (a) maintaining a shadow record for the buyer or the seller to be held independently by the supervisory institution from the bank;  
 (b) for every transaction resulting in a payment obligation, the supervisory institution electronically adjusting said shadow record, allowing only those payment transactions that do not result in a value of said shadow record being less than zero; and  
 (c) exchanging at least one account transaction between the supervisory institution and the bank at the end of a period of time in accordance with said adjustments made in step (b), wherein said account transaction being an irrevocable, time invariant obligation placed on the bank.  
 
   
   
     66. The method of  claim 65 , further comprising the step of obtaining from the bank a balance for said shadow record. 
   
   
     67. The method of  claim 65 , wherein said period of time is a part of a day. 
   
   
     68. A method of exchanging an obligation between parties, wherein an exchange obligation is administered by a supervisory institution, the method performed by the supervisory institution, comprising:
 maintaining a first account for a first party, independent from a second account maintained by a first exchange institution;  
 maintaining a third account for a second party, independent from a fourth account maintained by a second exchange institution;  
 electronically adjusting said first account and said third account in order to effect the exchange obligation between said first party and said second party after ensuring that said first party and said second party have adequate value in said first account and said third account, respectively; and  
 providing an instruction to said first exchange institution and said second exchange institution to adjust said second account and said fourth account in accordance with the adjustment of said first account and said third account, wherein said instruction being an irrevocable, time invariant obligation placed on said first exchange institution and said second exchange institution.  
 
   
   
     69. The method of  claim 68 , wherein said first and/or second exchange institution is a central bank. 
   
   
     70. The method of  claim 69 , wherein said first exchange institution and said second exchange institution are the same. 
   
   
     71. The method of  claim 68 , wherein said second account and said fourth account are the same account. 
   
   
     72. The method of  claim 68 , wherein the exchange obligation involves currency. 
   
   
     73. The method of  claim 68 , wherein said first and/or second exchange institution is a non-bank clearing house or depository. 
   
   
     74. The method of  claim 68 , wherein adequate value requires that said first account and said third account have a positive balance. 
   
   
     75. The method of  claim 68 , wherein said instruction to said first exchange institution and said second exchange institution represents adjustments to said first and said third account netted throughout a period of time.